C hina's Profits and Losses from Currency Intervention, 1994–2011

China's currency policy has been criticized for its apparent pursuit of mercantile advantage by artificially stimulating exports, with potential adverse effects on other economies. While C hina's currency policy may have positive output effects, there may be additional profits or losses. This paper computes the annual and cumulative accounting profits from currency intervention since 1994 when C hina began its currency intervention. It is shown that profits initially were positive but since 2007 C hina has lost a massive amount from the currency market.